Unit 2 - Part 2 Flashcards
___ is the percentage of income that could be secured if 100 percent of available rooms were sold at their full rack rate.
Yield
____ is the revenue that could be received if all the rooms were sold at the rack rate.
no. of hotel rooms × rack rate
Revenue Potential
____ is the actual amount of room revenue earned ( no. of rooms sold × actual rate).
Revenue Realized
Formula for determining yield
(Revenue realized ÷ revenue Potential) × 100
The determination of yield provides a better measure of a hotel staff’s effort to achieve maximum occupancy than the traditional occupancy percentage.
T or F?
True
Achieving the best yield involves redefining ____ and ____.
Occupancy Percentage and ADR
_____, achieving 100 percent occupancy with room sales, which will yield to the highest room rates.
Optimal occupancy
___, a room rate that approaches the rack rate, works together to produce the yield.
Optimal room rate
____ offers simple policies for developing strategies to implement yield management .
E. Orkin
E. Orkin’s policies
When demand is high, maximize room rates;
When demand is low, maximize room sales .
____ states that A revenue management strategy establishes “target” numbers to be achieved through
a variety of ways: sales, manipulating the GDS, controlling the allocation and rate in
the electronic distribution channels, etc. In other words, it is proactive rather than
reactive function that simply turns the faucets on and off.
Carol Verret
She also describes the components of revenue management. Revenue drivers are defined as all areas of revenue generation within the organization.
This includes central reservations, property-level reservations, the sales department,
the electronic distribution channels and the web site.
Carol Verret
______ are defined as all areas of revenue generation within the organization.
This includes central reservations, property-level reservations, the sales department,
the electronic distribution channels and the web site
Revenue drivers
______ who suggests aggressive revenue management tactics based on the history of reservation performance.
Neil Salerno
____ suggests using
a daily decision orientation rather than a seasonal decision-making scheme in developing a
particular strategy.
Orkin
Accurate ____ of transient demand assists hoteliers in developing strategies to maximize sales to this group.
Forecasting
One of the most important applications of revenue management is reviewing your _____ as well as that of your ___.
Hotel’s performance
Competitors
The international system that is available for hoteliers is the ____ that is made possible by STR and, since 2008, STR
Global.
Star Report
In 2008 STR combined its non-North American operations with the two international
leaders in the benchmarking arena, ____ and ____, to form
STR Global.
Deloitte’s HotelBenchmark™ and The Bench
_____ track supply and demand data for the hotel industry and provide valuable market share analysis for all
major international hotel chains and brands.
STR and STR Global
____& offers an excellent web site with tutorials and Questions
& Answers to assist clients in reading their reports.
STR and STR Global
Who invented STR ?
Randy Smith
Use to denotespecific dates where rewards, negotiated rates, extended stay discounts, and other travel promotions are not available.
Block-out Periods
